Guyana: Decision Must Be Made on Gas Monetisation Before 2030

• President of Guyana, Dr Irfaan Ali, has set a firm deadline for the monetisation of Guyana’s gas reserves, declaring that the country must make a definitive decision before 2030. Speaking during his feature address at the Berbice Development Summit, the President said that the issue of how Guyana will utilise its natural-gas resources cannot be delayed or passed on to another administration.
•  Dr Ali noted that the government is currently assessing several models for gas use and export, with the aim of maximising national benefits, while balancing sustainability, job creation and industrial transformation. According to the President, the government’s objective is to ensure that ‘every molecule of gas’ contributes to the country’s economic diversification. The ongoing infrastructural developments, including pipelines, industrial parks and downstream facilities, will serve as the backbone of its long-term plan.
• President Ali underscored that while oil has dominated early production, natural gas represents a crucial phase in Guyana’s industrial transformation, one that will determine the pace and depth of economic diversification.
• Fitch BMI concurs, noting that Guyana’s utilisation of gas reserves through a Gas-To-Energy project and strengthening local content rules for oil and gas firms will support growth in the non-oil economy. The commissioning will reduce fuel imports and electricity costs (by 50%). Furthermore, lower electricity tariffs and more reliable power will support construction, logistics, food processing and other power-intensive services. The government has alluded to potential development of downstream hydrocarbon industries, including fertiliser, petrochemicals and refined fuels production. There is also potential for Guyana to develop bauxite mining to feed into new, energy-intensive aluminium production in the 2030s.
• That said, Guyana's economy is set to expand by 9.1% in real terms in 2025 on the back of robust oil production, one of the fastest rates globally, though well below the 43.6% growth rate in 2024. Real GDP growth is set to accelerate to 13.5% in 2026 as the majority of the benefit from the Yellowtail project commencement will accrue in 2026. Over the longer term, utilisation of natural gas production to power Gas to Energy projects could boost economic activity in the coming years.

(Sources: Guyana Chronicle and BMI- A Fitch Solutions Company)